Industry experts believe both passenger fares and air freight rates could remain elevated until SpiceJet restores services

The near-complete withdrawal of SpiceJet from Chennai has not only reduced competition in the city’s domestic aviation market and pushed up airfares but has also disrupted air cargo movement, particularly to destinations in southern Tamil Nadu, industry stakeholders said.

About a decade back, Chennai airport was one of SpiceJet’s key operational bases, with over 25 daily flights. Even until April this year, the airline operated 12 daily flights connecting Chennai with Ahmedabad, Mumbai, Kolkata, Kochi, Hyderabad, Shivamogga, Pune and Bengaluru.

Those services have now been suspended as the airline grapples with financial and operational challenges, including aircraft shortages and reliance on wet-leased aircraft, sources said.

Flight Maintainance

SpiceJet said the suspension is temporary and flights to Chennai will resume in October after scheduled maintenance, including routine checks and C-Checks, in line with seasonal demand. “The airline expects three aircraft to join the fleet in July, followed by two in August after completion of maintenance checks, and two aircraft each in September and October,” a SpiceJet official said.

The airline’s absence has left IndiGo with a dominant position on several domestic routes from Chennai, with Air India providing limited competition. Travel agents say the reduced competition has translated into higher ticket prices, particularly on routes where SpiceJet had traditionally offered lower fares.

“There is virtually no competition now, so fares have increased. Many middle-income travellers are flying only when absolutely necessary and are increasingly choosing road or rail transport,” said Devaki, a Chennai-based travel agent.

Industry observers said the impact extends beyond passenger travel.

Air Cargo

SpiceJet’s passenger aircraft carried substantial volumes of belly cargo, especially shipments destined for southern Tamil Nadu. With the airline’s services suspended, much of this cargo has shifted to road transport, increasing transit time and logistics costs for businesses.

Air cargo operators said belly-hold capacity is critical for transporting time-sensitive consignments such as engineering components, pharmaceuticals, electronics and perishables, J. Krishnan of Natesa Iyer LLC, said. The loss of scheduled passenger flights has reduced available cargo capacity from Chennai, forcing shippers either to pay higher freight rates on the remaining airlines or switch to slower surface transport, he added.

With Chennai’s aviation market becoming increasingly concentrated in favour of IndiGo, industry experts believe both passenger fares and air freight rates could remain elevated until SpiceJet restores services or other airlines add capacity on key domestic routes.

Published on July 2, 2026